European Economic and Social Committee

Symposium on“Ageing Societies in Europe and Japan:
Active and Healthy Ageing –Social and Economic Challenges”
g11 October,O t b 2012
Kwansei Gakuin University
European Economic and Social Committee

Business Challenges and Opportunities
Arising From an Ageing Society

Eve Päärendson
EESC‐Japan Contact GroupDemographicg p change
g in the EU Ageing population (out of 501.1 million 87.1 million were aged
65 or over (1.1.2010) – 17.4%; (in Japan it is 24.1%):
9 Low fertility rates: in the EU 27 will be no higher than 1.6 for eachwoman in the population, well below the rate of 2.1 necessary toreplace each generation.
generation Only in IE and FR fertility rate in 2009
exceeded 2.0 children per woman, in LV, PT, HU: 1.3 live births per
women, 1.36 in DE) →high unemployment amongst young people,diffi l i combining
difficulties
bi i workk & ffamily
il liflife→→ddelayl startingi a ffamilyil
9 Increasing life expectancy (life expectancy at birth in the EU‐27(2009): M – 76.7;
76 7; F – 82.6
82 6 years): improvements in healthcare
healthcare,
medicine, diets, lifestyles, living conditions
9 Women live longer, but life expectancy gender gap is shrinking.
9 The gender gap in healthy life years is marginal, women will livelonger
g but not necessarilyy of ggreater qqualityyRelative importance of elderly persons
aged 65+ (% share of population)

Source: Eurostat (online data codes: demo_gind and demo_pjangroup) and United Nations, Department of Economic
and Social Affairs, World population prospects: the 2010 revision

Demographicg p change
g in the EU Increasing median age (40.4 yrs in 2008→ 47.9 yrs in 2060)
 Increasing old‐age dependency ratios (65+/15‐64): from 25.4% to 53.5% in2060):)¾in the EU‐27 less than 2 persons of working age for each person aged 65+
by the year 2060
¾increase of social expenditure (sustainability of pensions, healthcare,institutional care) The number of people aged 80
80+ years is projected to almost triple, from 21.8
million on 2008 to 61.4 million in 2060
 The older age groups will become larger than the younger ones
 We need to encourage the “babybaby boom”
boom generation to delay retirement,retirement
more migrant workers, although immigration is decreasing
 Emigration (GR, IE, PT, ES, Baltic countries) accelerates demographic ageing,
how will Greece recover if their skilled workers are moving out
out; economic &social impact

Old age dependancy ratio(POP65+)POP65+)*100
100

POP15‐64

Germany and Italy over 30%

The 2012 Ageing Report
Source: EurofoundOld age dependancy ratio

POP65+)*100
POP15 64
POP15‐64

Every Member State except
Ireland over 30%

Source: EurofoundChanges in population and workforce
2010‐2020 by age groupEmployment by age 2000‐2012
2000 2012

European Labour Force Survey

Employment rate of older workers

Source: EurofoundParticipation in education and training,2009 (%)(1)Ageing off theh workforce
kf
Relative development of working age population for EU‐27
EU 27 andother parts of the world

Source: Europop2008, Eurostat

The main questions:
1.

2.
3.

How to attract investment, remain competitivepand
foster economic growth with an ageing & shrinking
working age population?
1.1 How to transform challenges related to theageing population into opportunities?
opportunities?
How to provide adequate pensions, healthcare andother services for increasing number of older people?
How to enable older people to remain independent &active citizens…?

Demographic change:challenges & opportunities
CHALLENGES•LABOUR & SKILL SHORTAGES• PRODUCTS & SERVICE DEVELOPMENTOPPORTUNITIESHEALTHIER AGEING ENABLES
EXTENDED PARTICIPATIONFUNDING & SUSTAINABILITY OFPENSIONS,SOCIAL SECURITY &HEALTH CARE SYSTEMSEDUCATION:NEED TO RETAIN & UPDATE SKILLSPOLICIES: employment, fiscal, social, …

SILVER ECONOMYDemographic change: main challenges:
 Increasing imbalance between working population and the retired Increased average age of the workforce,
workforce fewer young,young more migrantworkers
 Shortage of labour and skills hampers economic growth, competitiveness,innovation capacity
p y & standard of living:g¾ EU´s working age population will decline by 50 m by 2060
¾ replacement demand due to retirements: 73 m over the period 2010‐2020((Cedefop)p)¾ physics, mathematics, engineering, health, life science, teaching professions
 Need to increase labour participation for all age groups, and boost
productivity, More migrant workers
 Need to increase investmets in innovation & new technologies
 To remain sustainably competitive,competitive European companies will have to adapt
their employment and HR policies to an ageing workforce, and to develop
innovative products and services for the silver economy

Solutions for compensating labour shortage:
 Greater workforce participation of female workers, young, elderly,
persons with disabilities ((incentives if appropriate)
ppp p)
 Prolonging working lives (incl workers of “baby boom” generation)
 Improvep
productivityy and empoweringpp
g older employees
p ythroughg
investing in lifelong learning (LLL): upgrading, updating of skills
 Reform of pension systems, raised retirement ages (effectiveretirementiage),) reviewing
i i tax‐ andd benefit
bfi systems
 Age‐friendly work places Migration
Mi ti
 Increasing investments in R&D and developing technologicalsolutions for compensation of shortage of labour in certain sectors(nursing, farming)

What can employers
p y do to promote
pemploymentp yof older workers?
 A
Age ffriendly
i dl managementt (fl(flexibleibl working
ki andd retirement
tit
options – partial retirement);gy HR ppolicy:y improve
pemployability
p yy throughg Age‐friendly
investing in continuous skills
k ll ddevelopment
loff allll age groups,
schemes for intergenerational knowledge transfer, re‐skilling
programmes at mid‐career points, personalized careerdevelopment paths
 Promote healthy lifestyle, good health & safety measures atwork Companies (SMEs), too, need training regarding active aging
in employment (best practices of management of diversifiedteams)
 Help seniors to set up their own business and invest incompanies

Transforming challenges into new opportunities:

Additional jobs (health & social care sector, recreation services, …)

Boosts innovation, R&D,

New clusters (bio‐ and nano‐technologies
nano‐technologies…))

Creation of new markets, innovative products/services (“silver economy”):¾

ICT‐based innovative solutions (delivery of health & care services, facilitates LLL,
access to e‐services, smart houses, facilitates social inclusion);¾Robotics¾Medical field & pharmacy¾Housing¾Nutrition¾Tourism ….

Companies:¾55+ isi a significant
i ifi t consumer group withith growing
i purchasing
h i power¾

Product & service development: * needs of older consumers,* re‐thinkingg sales & marketingg

The European Year for Active Ageing & Solidarity
Between Generations 2012 : http://europa.eu/ey2012/:
Policy makers & CSOs work together: to raise awareness of the ageing process & the contribution olderpeople can make to society, promote active, healthy ageing & intergenerational solidarity in :
¾ Employment (longer working lives)¾ Active participation in society (active citizenship, volunteering,entrepreneurship caring (parentsentrepreneurship,(parents, spouses,spouses grandchildren)¾ Independent living
Methods: *reviewing policies, tax‐ and benefit systems; *integrating EY2012 objectives
in organisation´s work programme; *awareness raising events & exchanges of goodpractices
SPs and CSOs have an important role to play:¾ BUSINESSEUROPE : “Age Management Policies in Enterprises in Europe” project¾ EESC Coordination Group for the Active Ageing & Solidarity between Generations(conferences, hearings; adoption of relevant opinions…)

Ageing is inevitable –growing old in mind and attitude is optional!

THANK YOU VERY MUCH FOR YOUR ATTENTION!
DOOMO ARIGATO GOZAIMASHITA!
For further information please contact
Eve Päärendson:
eve@employers.ee@ p y